Interested in trading again

Looks like the beginning of a great journal Lundy. Thanks for sharing your past mistakes too.

 

Hi Lundy,

Welcome back to EliteTrader.com

I'm a big fan of not trading until personal problems that are in conflict with trading or that have impact on trading decisions have been resolved.

With that said and based upon your prior journal...

http://www.elitetrader.com/vb/showthread.php?s=&threadid=11653

Have you resolved those past problems???

Also, what realtime simulator are you using???

I'm assuming your able to discuss such (not private info) since you've discussed your problems openly here in the past at ET in the prior journal.

Mark
(a.k.a. NihabaAshi) Japanese Candlestick term

 

Thanks Roberk.

Nihaba, I have worked through alot of personal issues. I don't beleive I am perfect, but I am 800% better than before.

I use wealthlab eod for strategy testing. I look at Island's quote book on their website to get a realtime quote when I need it.

 

moving stop on COST up to 50.5

 

with the recent bullish engulfing candle on the daily for COST, and the large volume, I decided to move my target on COST up to 57 for the time being. I will also move my stop up to 51.5

 

with the bullish engulfing 2 days ago on high volume, and the high volume small range today, I would have to guess the stock is going to be volatile tomorrow. Perhaps it will do a large gap or an extended move.

It also looks like it could get a whole lot more volume as well.

 

PFE looks like an excellent trend play. I will have my paper broker buy at 26.25 limit order at the open tomorrow.

Will trail a stop at 25.80 and increase it .10 cents every day I am in.

Initial target will be set at 29.

 

I stopped out of PFE at 26.00 with a .10 loss (entry was 26.10)

I am exiting COST at 54.99 with a 5.24 point gain (entry was at 49.75)

I am exiting PDCO at 36 with a 1.75 gain (entry was at 34.25)



I am exiting my paper trades because tomorrow I am live.

I have a margin account with IB. I have 3k to use. I will take directional positions using options. My trades will be held from days to weeks. I may in some cases add to positions but only when they are going my way.

Aloha,
Lundy

 

My universe of stocks is defined as:

price 20-35 | daily avg vol > 3m
price 35-50 | daily avg vol > 5m
price 50-1000 | daily avg vol > 8m

I am looking at stocks establishing a trend < 120% relative to prior moves in the opposite direction Or stocks that have an established trend < 400% relative to prior moves in the opposite direction.

I will trade selective breakouts in uptrends and breakdowns in downtrends.

Here is an example of something I am looking at.

rhat.png

If RHAT breaks 29.77 (without gapping) I will try to buy the Apr 35 Calls < .35 cents.

 

Hey Lundy,

I really would advise against trading soft deltas with your directional approach. If you are going to be making directional bets, I would trade hard deltas. I think you should seriously re-think this.

Let me offer you a suggestion if you are reluctant to trading hard deltas, trade the 1 x 2 backspread against your direction. You will find it far more forgiving on your directional plays with less risk then a hard delta position. Just a suggestion. Good luck.